Urja Daily
No Result
View All Result
  • News
  • Renewable
    • Solar
    • Rooftop
    • Floating Solar
    • Module
    • Wind
    • Hydrogen
    • Biomass
    • Tenders
    • Sustainibility
  • Storage
  • E-Mobility
  • EV Battery
  • Smart City
  • Power
    • Smart Grid
    • Microgrid
    • Off-Grid
  • Editor’s Pick
    • Articles
    • In Talks
    • E-MAG
    • Market Research
  • On-demand Webinars
  • More
    • Events
    • Contact Us
    • Subscribe
  • News
  • Renewable
    • Solar
    • Rooftop
    • Floating Solar
    • Module
    • Wind
    • Hydrogen
    • Biomass
    • Tenders
    • Sustainibility
  • Storage
  • E-Mobility
  • EV Battery
  • Smart City
  • Power
    • Smart Grid
    • Microgrid
    • Off-Grid
  • Editor’s Pick
    • Articles
    • In Talks
    • E-MAG
    • Market Research
  • On-demand Webinars
  • More
    • Events
    • Contact Us
    • Subscribe
No Result
View All Result
Urja Daily
No Result
View All Result
Home News

According to ICRA Overall Electricity Demand Nearly at pre-Covid Levels

Urja Daily by Urja Daily
September 3, 2020
in News
Reading Time: 3 mins read
0
According to ICRA Overall Electricity Demand Nearly at pre-Covid Levels
Share on FacebookShare on TwitterShare on Linkedin

As per an ICRA note, the electricity demand recovery on all India level has largely been led by Northern and Eastern states with a year-on-year (Y-o-Y) increase of 6 percent – 13 percent in demand in July 2020. This was mainly driven by rural consumption, while the demand in large industrial states witnessed a 6 percent – 15 percent decline in July 2020 on a Y-o-Y basis, on back of slower recovery in industrial activity. Also, the recovery in the all India demand in August 2020 is on a lower base, considering the demand decline witnessed on a Y-o-Y basis in August 2019.

Girishkumar Kadam, Sector Head & VP, Corporate ratings at ICRA said, “the imposition of lockdown to control the Covid-19 pandemic led to a decline in the all India electricity demand by 13.1 percent in the first four months of FY2021. While the monthly demand recovered from 85 billion units (BUs) in April 2020 to 112 BUs in July 2020, it remained lower on a Y-o-Y basis.

RELATED POSTS

Core Integra Launches Bengaluru Regional Office to Drive Expansion in South India

Kisani Urjaa Names Damini Bisht as Co-Founder to Expand Reach to 10,000 Villages

“Also, while the peak demand recovered from 133 GW in April 2020 to 171 GW in July 2020, it remained lower by 3.3 percent compared to July 2019. This was also because of the re-imposition of lockdown restrictions in many parts across the country, due to rise in Covid-19 infections. Given the energy demand trends so far across the key states, ICRA continues to maintain its outlook for about 5-6 percent decline in the all India electricity demand in FY2021 over FY2020. The decline in demand is expected to suppress the thermal PLF on an all India level to about 50-51 percent in FY2021 against 56.0 percent in FY2020.”

The note goes on to add that the decline in demand has adversely impacted revenues and cash collections for the power distribution utilities (Discoms), especially given that the bulk of the consumption decline has come from high tariff paying industrial and commercial consumers. The consequent revenue gap for the Discoms at all India level is estimated to increase by about Rs 420-450 billion in FY2021.

In the context of the large build-up of receivables from Discoms to power generating companies and the adverse impact of the lockdown on the Discom finances, the Government of India has announced a liquidity support scheme of Rs 90,000 crore for the state Discoms, discoms, in the form of loans against receivables, from the Power Financial Corporation (PFC) and the Rural Electrification Corporation (REC). PFC and REC have so far sanctioned Rs 68,000 crore under the.

scheme to clear payments to power generating companies in lieu of dues pending from the state Discoms.

“This is a positive development for the Central power utilities and IPPs impacted by the delays in receiving payments from the Discoms. For ICRA’s sample set of power generating companies, which together constitute for ~65 percent of the pending payments from discoms as of March 2020, the recovery of overdue payments from Discoms till March 2020 is estimated to lower the interest costs by ~9-10 percent on an annualised basis, assuming the payments realised under this scheme are primarily used to reduce the debt. Nonetheless, the discoms’ ability to make timely payments in a sustained manner towards the generating companies continues to remain a key monitorable, which would be dependent on the demand recovery from industrial and commercial consumers in the near term, besides the efforts to address the structural issues confronting the distribution segment.” adds Vikram V, Associate Head & Assistant VP, ICRA Ratings.

The note concludes by stating that thus, proactive efforts are required on the part of the state governments and Discoms for achieving a sustainable improvement in Discoms finances. These include timely filing of tariff petitions by Discoms to enable timely issuance of tariff orders by the regulators along with adequate tariff revisions, timely and adequate subsidy payments by the state governments and improvement in operating efficiency through a reduction in AT&C loss levels.

Tags: electricity demandElectricity Demand pre-Covid LevelICRAIndiamarket researchpower demand
ShareTweetShare
Urja Daily

Urja Daily

Related Posts

Mr. Sandesh Chitnis, CEO - Core Integra

Core Integra Launches Bengaluru Regional Office to Drive Expansion in South India

by Palak
May 20, 2025
0

Bengaluru : Core Integra has announced the opening of its new Regional Office for South India in Bengaluru. This strategic expansion comes on...

Damini Bisht, Co-founder_Kisani Urjaa

Kisani Urjaa Names Damini Bisht as Co-Founder to Expand Reach to 10,000 Villages

by Palak
May 20, 2025
0

India : Kisani Urjaa Pvt. Ltd. (KUPL) is pleased to announce the appointment of Damini Bisht as Co-Founder. Bringing over a...

Renny Strips

Renny Strips Fuels Urban Growth in India with Innovative Scaffolding and Formwork Solutions

by Palak
May 20, 2025
0

New Delhi – Renny Strips is driving India's urban revolution by offering innovative scaffolding and formwork solutions created to address...

Honeywell

Lupin and Honeywell Collaborate to Advance HFO Technology in Inhalers

by Palak
May 20, 2025
0

MUMBAI, DELHI : Global pharma major Lupin Limited (Lupin) announced today its plan to use Honeywell’s Solstice® Air (HFO-1234ze(E) cGMP) propellant...

Saleem Ahmed

ESSCI Celebrates Launch of Sixth Semiconductor Unit, Projects 1 Lakh+ Jobs by 2030

by Palak
May 20, 2025
0

New Delhi: Electronics Sector Skills Council of India (ESSCI) today welcomed the Union Cabinet’s approval of a new semiconductor manufacturing facility...

Next Post
Western Railway Announced to Give 3 Crore Rs for Solar Power

Western Railway Announced to Give 3 Crore Rs for Solar Power

Sungrow Sign MoU with Shanghai Electric to 1500V turnkey Solution

Sungrow Sign MoU with Shanghai Electric to 1500V turnkey Solution

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Vikram Solar

Vikram Solar Honored as Top Brand PV India 2025 by EUPD Research

May 20, 2025
Mr. Sandesh Chitnis, CEO - Core Integra

Core Integra Launches Bengaluru Regional Office to Drive Expansion in South India

May 20, 2025
  • 643 Followers
  • 23.9k Followers

MOST VIEWED

  • Hydrom

    Hydrom and Thyssenkrupp Nucera Partner for Green Hydrogen Projects in Oman

    0 shares
    Share 0 Tweet 0
  • SFC India Selected Dassault Systèmes for Indigenization and Digital Transformation of Wastewater Treatment Plants

    0 shares
    Share 0 Tweet 0
  • Juniper Green Energy Secures 1 GW Solar Module Deal with First Solar

    0 shares
    Share 0 Tweet 0
  • PGCIL Wins ISTS Project for Renewable Energy Integration in Karnataka

    0 shares
    Share 0 Tweet 0

Vikram Solar Honored as Top Brand PV India 2025 by EUPD Research

Core Integra Launches Bengaluru Regional Office to Drive Expansion in South India

Acme Solar reports strong annual performance, delivering on commitments

Kisani Urjaa Names Damini Bisht as Co-Founder to Expand Reach to 10,000 Villages

Renny Strips Fuels Urban Growth in India with Innovative Scaffolding and Formwork Solutions

Lupin and Honeywell Collaborate to Advance HFO Technology in Inhalers

Latest Magazine

© 2016 – 2025 TechZone Print Media | All Rights Reserved

  • About Us
  • Contact Us
No Result
View All Result
  • News
  • Renewable
    • Solar
    • Rooftop
    • Floating Solar
    • Module
    • Wind
    • Hydrogen
    • Biomass
    • Tenders
    • Sustainibility
  • Storage
  • E-Mobility
  • EV Battery
  • Smart City
  • Power
    • Smart Grid
    • Microgrid
    • Off-Grid
  • Editor’s Pick
    • Articles
    • In Talks
    • E-MAG
    • Market Research
  • On-demand Webinars
  • More
    • Events
    • Contact Us
    • Subscribe

© 2016 - 2025 TechZone Print Media | All Rights Reserved